08-25-2007, 03:54 PM
State lawmakers who allowed Miami to escape forced cuts in property taxes say they erred and are now rushing to fix the mistake and compel city commissioners to reduce the local budget even more than they had planned.
If Tallahassee succeeds, it would mean savings for city property owners. The owner of a home valued at $303,000 with a homestead exemption, for example, would save up to $578 on the city portion of the next tax bill.
Forcing a property-tax cut of up to 9 percent in Miami would slice up to $12 million from some $270 million in anticipated property-tax collections that city leaders were using to build the budget for the fiscal year that begins Oct. 1.
Most city commissioners say they support more cuts, though some fear it could mean the city will be forced to lay off personnel and slash departments.
''You're cutting to the bone,'' said Commissioner Marc Sarnoff.
Added Commissioner Joe Sanchez: ``It means we're going to have to tighten our belts and do more with less.''
Miami has an overall operating budget of about $530 million just over half that money comes from property taxes.
The city was poised to cut its property-tax receipts anyway -- the city manager's plan was to reduce this year's collections on existing property by some $13 million. A new mandate from Tallahassee would boost that cut to about $25 million.
But it had been spared from a statewide mandate for deeper cuts that lawmakers enacted in June through an exemption designed to help cities still recovering from recent financial crises, a list that included such places as Opa-locka and Pahokee. State lawmakers say they intended to give the exemption to any city that had seen serious financial troubles since June 30, 2002.
USED WRONG REPORT
But in drafting the legislation, analysts used the wrong report, relying on one that listed financially strapped cities in 2001. Miami had emerged from a fiscal emergency in March 2002 -- and although its tax collections have since jumped amid rapidly rising property values, it nonetheless qualified for the exemption from tax cuts.
''I would consider it to be an oversight,'' said State Rep. Julio Robaina, R-South Miami. ``But we could not reverse legislation because of one city that would have been unconstitutional.''
With state Rep. Carlos Lopez-Cantera, R-Miami, leading the effort, the House plans a bill during a special session that begins Sept. 18, with a mandated property-tax cut for Miami of between 3 and 9 percent.
City commissioners say they expect the cut to be 9 percent.
LEGACY OF WASTE
The legislative error that helped Miami reflects the haste and secrecy that sometimes surround the making of state law.
Legislative tax analysts learned that analysts had used the wrong list of financially troubled cities at 4:13 p.m. on June 13, the day before the sweeping bill was passed in the state House and Senate.
An e-mail about the problem from a Department of Revenue staffer soon made its way to House Speaker Marco Rubio.
But Rubio, like Gov. Charlie Crist and Senate President Ken Pruitt, kept quiet as the bill won passage.
''This is not something you advertise. It was embarrassing,'' Rubio said.
Another reason for silence: Rubio told the House just before learning of the error that ''the time for talking is done.'' He later reiterated his disdain for ''Tallahassee Specials,'' which are minor changes that the Legislature touts as reform.
Sen. Dean Cannon, an Orange County Republican and key property-tax negotiator, said even though staff failed to tell him about the error, he didn't mind that Miami had gotten on the list. He said it could be easily fixed and denied that legislative leaders rushed through the 10-day session -- which ended six days early with limited public input or debate.
''It was a mistake'' on Tallahassee's part, said Miami Commissioner Tomás Regalado. ``It means people will get a little more relief.''
Still, state Democrats were incensed at the way the House went about business.
''The amount of demagoguery even by Tallahassee standards is outrageous,'' said House Democratic leader Dan Gelber. ``We weren't allowed to see the legislation until it was too late. We couldn't change much of it. We weren't given the time to kick the tires and look under the hood. No wonder mistakes were made and nobody knew about them until it was too late.''
SEPTEMBER DEADLINES
Now the Legislature's plan to correct the error next month could create a race between Miami administrators and state lawmakers: Miami has to adopt a budget by Sept. 30, and the special session begins Sept. 18.
''It has to be rushed, that is correct,'' Robaina said.
If Tallahassee succeeds, it would mean savings for city property owners. The owner of a home valued at $303,000 with a homestead exemption, for example, would save up to $578 on the city portion of the next tax bill.
Forcing a property-tax cut of up to 9 percent in Miami would slice up to $12 million from some $270 million in anticipated property-tax collections that city leaders were using to build the budget for the fiscal year that begins Oct. 1.
Most city commissioners say they support more cuts, though some fear it could mean the city will be forced to lay off personnel and slash departments.
''You're cutting to the bone,'' said Commissioner Marc Sarnoff.
Added Commissioner Joe Sanchez: ``It means we're going to have to tighten our belts and do more with less.''
Miami has an overall operating budget of about $530 million just over half that money comes from property taxes.
The city was poised to cut its property-tax receipts anyway -- the city manager's plan was to reduce this year's collections on existing property by some $13 million. A new mandate from Tallahassee would boost that cut to about $25 million.
But it had been spared from a statewide mandate for deeper cuts that lawmakers enacted in June through an exemption designed to help cities still recovering from recent financial crises, a list that included such places as Opa-locka and Pahokee. State lawmakers say they intended to give the exemption to any city that had seen serious financial troubles since June 30, 2002.
USED WRONG REPORT
But in drafting the legislation, analysts used the wrong report, relying on one that listed financially strapped cities in 2001. Miami had emerged from a fiscal emergency in March 2002 -- and although its tax collections have since jumped amid rapidly rising property values, it nonetheless qualified for the exemption from tax cuts.
''I would consider it to be an oversight,'' said State Rep. Julio Robaina, R-South Miami. ``But we could not reverse legislation because of one city that would have been unconstitutional.''
With state Rep. Carlos Lopez-Cantera, R-Miami, leading the effort, the House plans a bill during a special session that begins Sept. 18, with a mandated property-tax cut for Miami of between 3 and 9 percent.
City commissioners say they expect the cut to be 9 percent.
LEGACY OF WASTE
The legislative error that helped Miami reflects the haste and secrecy that sometimes surround the making of state law.
Legislative tax analysts learned that analysts had used the wrong list of financially troubled cities at 4:13 p.m. on June 13, the day before the sweeping bill was passed in the state House and Senate.
An e-mail about the problem from a Department of Revenue staffer soon made its way to House Speaker Marco Rubio.
But Rubio, like Gov. Charlie Crist and Senate President Ken Pruitt, kept quiet as the bill won passage.
''This is not something you advertise. It was embarrassing,'' Rubio said.
Another reason for silence: Rubio told the House just before learning of the error that ''the time for talking is done.'' He later reiterated his disdain for ''Tallahassee Specials,'' which are minor changes that the Legislature touts as reform.
Sen. Dean Cannon, an Orange County Republican and key property-tax negotiator, said even though staff failed to tell him about the error, he didn't mind that Miami had gotten on the list. He said it could be easily fixed and denied that legislative leaders rushed through the 10-day session -- which ended six days early with limited public input or debate.
''It was a mistake'' on Tallahassee's part, said Miami Commissioner Tomás Regalado. ``It means people will get a little more relief.''
Still, state Democrats were incensed at the way the House went about business.
''The amount of demagoguery even by Tallahassee standards is outrageous,'' said House Democratic leader Dan Gelber. ``We weren't allowed to see the legislation until it was too late. We couldn't change much of it. We weren't given the time to kick the tires and look under the hood. No wonder mistakes were made and nobody knew about them until it was too late.''
SEPTEMBER DEADLINES
Now the Legislature's plan to correct the error next month could create a race between Miami administrators and state lawmakers: Miami has to adopt a budget by Sept. 30, and the special session begins Sept. 18.
''It has to be rushed, that is correct,'' Robaina said.